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Commonminussized balance sheets (A) show data for companies in the same industry. (B) show data for companies with approximately the same amount of assets. (C) show each balance sheet account as a percentage of total assets. (D) show each balance sheet account as a percentage of total sales.

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Answer:

(D) show each balance sheet account as a percentage of total sales.

Explanation:

Common sized balance sheets are prepared to know the performance of a company in percentage terms. The assets are shown as a percentage of total assets and the liabilities are shown as a percentage of total liabilities.

Therefore, the correct option is D.

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